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Apple profits down despite record iPhone sales

2013-10-29 08:29:00| Telecompaper Headlines

(Telecompaper) Apple reported revenues stronger than expected for its fiscal fourth quarter to September, led by record sales of the iPhone. Revenues rose to USD 37.5 billion from USD 36 billion a year earlier, just better than Apple's outlook of USD 34-37 billion. The gross margin was also at the top of its outlook, at 37 percent versus 40 percent a year earlier. Net profit fell to USD 7.5 billion or USD 8.26 per diluted share, from USD 8.2 billion or USD 8.67 per share in the year-ago quarter. The company sold 33.8 million iPhones, a record for the September quarter, compared to 26.9 million in the year-ago quarter. iPad sales rose slightly, to 14.1 million units from 14.0 million, and Mac sales fell to 4.6 million from 4.9 million in the year-ago quarter. After operating cash flow of USD 9.9 billion in the quarter, Apple declared a dividend of USD 3.05 per share. Sales in the December quarter are expected to get a boost from the new iPhones and iPads released by the company, reaching USD 55-58 billion. The gross margin is estimated at 36.5-37.5 percent.

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